ChemAnalyst reported in March 2025 that Chinese Metformin Hydrochloride (HCL) prices rose significantly because of supply limitations and rising production expenses combined with strengthened trade procurement measures. The pharmaceutical sector maintained its high consumption of Metformin HCL as one of the most commonly used API for type 2 diabetes management.

• Metformin HCL prices in China rose in March 2025 due to tight supply and elevated production costs.
• Accelerated procurement driven by new U.S. tariffs intensified supply chain pressure for Metformin HCL.
• China’s growth in new orders and rising input costs added to upward pricing momentum for Metformin HCL.
• Strong export demand, supported by low freight rates, further strained domestic availability of Metformin HCL.
• Metformin HCL prices are expected to soften in the coming month as exporters face escalating trade tensions with the U.S.

According to market experts, U.S. governmental implementation of new pharmaceutical import tariffs from China caused international markets to become anxious while importers rushed to expedite their purchasing agendas to prevent supply chain disruptions. Advance procurement activities intensified pressure on limited supply networks leading to higher prices of Metformin HCL in the market. The rapid rise in orders forced domestic manufacturers to increase the prices as they saw increased demands.

Compounding the situation, the official Purchasing Managers’ Index from China reached 50.5 during March which marked a twelve-month high as an indicator of growing manufacturing output. The PMI increased due to increase of new orders. Higher pharmaceutical and chemical sector orders caused key raw material scarcity while increasing production inputs. These factors generated sustained inflationary effects on Metformin HCL prices while the national Consumer Price Index decreased slightly showing easing of consumer-level inflation.

Export competitiveness remained strong, supported by low freight rates from China to Western destinations, allowing suppliers to respond to increased international demand. As a result, export volumes remained elevated, contributing to further market tightness at the domestic level for Metformin HCL.

Market trends from March point towards rising prices yet recent market data indicates prices could change direction in April. International trade tensions between China and the United States force Chinese exporters to face continuously growing economic pressures. Global buyers who are expanding their sourcing bases and the intensified trade impacts will push Chinese suppliers to decrease their prices of Metformin HCL to maintain market competitiveness. An upcoming decrease in Metformin HCL prices will likely occur during the next period because exporters need to prepare for additional trade difficulties.